Tortious Interference
Tortious Interference is an act of intentionally interfering with someone’s business. The intentional interference may be by directly interfering with a business deal, or by interfering with the day-to-day operations or even by spreading false claims about the business. Tortious interference with a contract happens when a person who is not a party to an original contract somehow influences one of the contracting parties to breach their contractual duties. This situation is only applicable where there is a written contract between two or more parties. Tortious interference is Intrusion into a contractual relationship between two other parties that is so egregious as to allow the harmed party to file a civil lawsuit under a “tort” claim. Tortious interference is a civil matter handled by the civil courts.
Tortious interference is all about intent. If the person doing the interfering did not intend to cause harm, then there are no grounds to sue for tortious interference. However, if you intentionally interfere with a third party’s normal business operations, then you are probably guilty of tortious interference.
Tortious Interference with a Contract
Tortious interference with a contract happens when a person who is not a party to a contract somehow influences one of the contract parties to breach the contract. This only applies where there is a written contract between two or more parties.
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Moonshine Coffeehouse Inc. and Aromatic Farms have a longstanding exclusive contract for the production and delivery of their Triple A moonshine infused coffee beans.
Case
The Moonshine Coffeehouse Inc. and Aromatic Farms contract calls for the delivery of all beans produced domestic and foreign on Aromatic Farms to Moonshines distribution warehouses for processing and redelivery to Moonshines Coffeehouses. The parties agree that the price per pallet will be $3000 with a guarantee 4000 pallet minimum. MJGreen House, Inc. a competitor of Aromatic approaches Moonshine and informs them that Aromatic is undercutting Moonshine by withholding 10% of their worldwide coffee beans production for sale to Moonshines competitor coffeehouse Star Tracks Inc. for $2000 per pallet.
As a result of this information Moonshine Coffeehouse Inc., cancels the Aromatic contract refusing to purchase any further pallets from Aromatic. Moonshine Coffeehouse Inc., enters into a new agreement with MJGreen House, Inc., agreeing to purchase the same quantities from MJGreen House, Inc.
Please use IRAC Format (see attachment)
1. What are the issues in this case?
2. What is the applicable Rule of law under these facts?
3. Would Aromatic have standing to sue MJGreen House, Inc. for tortious interference with contract because MJGreens actions persuaded Moonshine breach the Aromatic contract?
4. Would it make a difference if the information were true?
5. What if the statement by MJGreen House, Inc., were false?
6. What would Aromatic have to prove to be able to establish a prima facie case for tortious interference and hold MJGreen liable for tortious interference with contract?
7. Was there an existing contract or reasonable expectation of economic benefit or advantage between Aromatic Farms, and Aromatic Farms?
8. What would Defendant MJGreen House, Inc., have to know to breach the contract under tortious interference?
9. What loss can Aromatic Farms claim?
10. What facts support that MJGreen House, Inc., had knowledge of the Aromatic Farms contract with Aromatic Farms?
